I think Shutterfly provides the best quality product of all the on-line photo sites for creating books, cards and other gifts.
It differentiates itself from iPhoto and Blurb by having hundreds of colorful styles that can give your books more of a scrapbook feel. The Simple Path automatically arranges your pictures for you, while the Custom Path enables you to design your own with their collection of layouts, backgrounds and embellishments.
I have bought my Christmas cards from Shutterfly for years and have always been very pleased with their quality and delivery times. This year I also plan to take some of my best photos of a local park and create boxed sets of of note cards as gifts.
If I get around to it, I may also try out one of their calendars. They also have a very interesting 'talking' iPad book you should check out.
Shutterfly recently purchased MyPublisher, which is very similar to Blurb in tat it enables you to work offline.
The company has frequent sales so make sure that you always check for discount codes before you finalize an order.